Wireless transactions using RFID-based proximity cards are fairly common place. For instance, many workers use RFID keycards to gain access to their workplace and drivers use RFID passes to pay tolls at highway speeds. RFID, which stands for radio-frequency identification, uses electromagnetic waves to exchange data between a terminal and some object for the purpose of identification. More recently, companies have been trying to use RFIDs supported by cellular telephones to implement an electronic payment product (i.e. credit and/or debit card). However, basic RFID technology raises a number of security concerns that have prompted modifications of the basic technology. Still, widespread adoption of RFID as a mechanism for electronic payments has been slow.
Smartphone penetration with consumers is also growing quickly. A challenge has arisen on how to enable consumers to make electronic payment using their existing mobile phone. Near Field Communication technology in phones with embedded secure elements enables one potential solution for this challenge.
Near Field Communication (NFC) is another technology that like RFID uses electromagnetic waves to exchange data. NFC is an open standard (see, e.g. ISO/IEC 18092) specifying modulation schemes, coding, transfer speeds and RF interface. Unlike RFID, NFC waves are only transmitted over a short-range (on the order of a few inches) and at high-frequencies. Thus, there has been wider adoption of NFC as a communication platform because it provides better security for financial transactions and access control. Other short distance communication protocols are known and may gain acceptance for use in supporting financial transactions and access control.
NFC devices are already being used to make payments at some point of sale devices. But there are many point of sale devices that are not enabled for NFC communications. Accordingly, the present invention seeks to provide a solution to enable any smartphone to make highly secure electronic payments at merchants that accept legacy electronic payments with existing point-of-sale equipment.
Another problem is the myriad of communications protocols associated with the various different point of sale terminals available. So, for instance, the protocol necessary to successfully communicate wirelessly with an IBM point of sale terminal may be very different from the protocol necessary to communication with an NCR terminal. Accordingly, it is an object of the present invention to provide a system and method for using geo-location data (where available) to try to predetermine the likely point of sale terminal device present in the retail establishment co-located with the portable communication device.
The ability for physical merchants to accept electronic forms payment has grown substantially in developed countries and is rapidly growing in developing countries. The financial industry has developed and deployed stringent systems, methods, and requirements on electronic transactions to mitigate and minimize fraudulent behavior.
Accordingly, the present invention also seeks to provide one or more solutions to the foregoing opportunities and related problems as would be understood by those of ordinary skill in the art having the present specification before them. These and other objects and advantages of the present disclosure will also be apparent to those of ordinary skill in the art having the present drawings, specifications, and claims before them. It is intended that all such additional systems, methods, features, and advantages be included within this description, be within the scope of the disclosure, and be protected by the accompanying claims.